Pirated versions of Microsoft's Windows XP computer operating system have flooded Beijing's computer market, the local press reported, just days before its official launch in China.

Copies of Microsoft's latest product labelled "officially copyrighted" were freely available at the Zhongguancun computer market for about 30 yuan (�2.45; $3.60), the Beijing Evening News said.

Microsoft will launch a "simplified Chinese" version of Windows XP on Thursday with a price tag of 1,498 yuan (�123; $180).

Microsoft officials warned that the pirated versions were of sample versions and their use could cause damage to computers, the report said.

A number of a software manufacturers were also using the XP brand, with products called "Oriental Dadian XP" and "Jingying 315XP", to promote their sales, it said.

Piracy problem

Microsoft sold out of copies Windows XP within two hours of its official launch in Hong Kong last week, the company claimed, but copies of English and Chinese versions of Windows XP were already available in many shopping malls.

"The piracy problem is very serious for the local software industry but the Hong Kong Government should be congratulated for their efforts," Mark Phibbs, Microsoft general manager of business development for Asia said last week.

A recent report for industry body Business Software Alliance found China ranked second for software piracy after Vietnam.

The report valued the losses last year in China due to software piracy at $1.12bn, almost double those in 1999.